The interaction of the financial sector particularly the growth effects of stock market on the real economy is a matter to be probed. Over the past few decades the world stock markets have surged and emerging market countries have accounted for a large share of this boom. The growth of stock markets in emerging markets is partly due to the shift in policies from financial repression to financial liberalization which led to an increasing significance of capital markets in the allocation of financial resources. The study has ventured to analyze the impact of financial development, financial...